EMKA establishes a new central warehouse in China

09/25/2013

A significant reduction in transport costs and overall shorter delivery times for the growing markets in Asia – these are the objectives of EMKA with its new central warehouse in Tianjin, a metropolis in the Northeast of China. There, the manufacturer of locking systems uses capacities of a large logistic park with a free trade zone. One reason for the choice of the location: EMKA’s own subsidiary is located only 50 km away from the warehouse.

„The Asian market is more price conscious than the European market. Anyone, who wants to gain competitive advantages must be able to provide not only especially large quantities in a short time but in addition excellent products. In our view this is only possible by means of proximity to customers and correspondingly low transport costs”, says EMKA owner and Managing Director Friedhelm Runge about his strategic decision for the new central warehouse in Tianjin.

Strong infrastructureThe free trade zone offers an ideal infrastructure to achieve the shortest possible routes. The capital, Beijing, for example, is only about 140 km away. In addition, Tianjin also has its own airport for cargo traffic and is located directly at the harbour to the Pacific Ocean. This way, the neighbour countries South Korea and Japan can be served just as good with locking systems, hinges and gaskets as the entire Asia-Pacific region.

Falling transport costs A simple calculation example shows the efficiency of the transport from the new central warehouse: A shipment via air freight from Germany to Japan currently takes about one week. From Tianjin, EMKA can handle the same job by sea. The customer receives his goods also after one week and at the same time the transport costs for the company are five times lower than by air from Germany. This delivery efficiency has also positive effects for customers on pricing.

EMKA currently generates about 20 percent of its sales in Asia, the tendency is rising. Accordingly, the local markets are important for the future development of the company. Directly in China a total of 13 sales offices are spread all over the country on a decentral basis apart from the own production site. Together with the new central warehouse, they guarantee the further growth in the People’s Republic of China.